AMEX:SPY SPY has perfectly tested & wicked off the 200 SMA and trigger-line of the descending (red-dashed) fork that held price from late March through July.
Upon testing the trigger line, SPY is starting to show some bearish divergence on sub-daily timeframes.
If this trigger-line manages to hold, I'm expecting a move lower to the new (yellow) fork's median line which is conveniently in sync with the U-MLH of the previous fork.
Back in March, my original downside target levels for the SPY we're 350 or 320.
AKA the 50% & 61.8% retracement levels of the Covid low to "everything bubble" high.
I'm expecting that median line test to occur at or near one of these fib levels.
Target 1: 50% Fib - 350 SPY
Target 2: 61.8% Fib - 320 SPY
Let's see what happens.
Fat_Fat
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Previous Move:
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Initial move down:
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Don't let a short-term gap fill fake you out over the next few days.
Those who missed out, may get another chance to short.